Term Insurance in the UAE is a type of life insurance that offers financial life cover for a fixed tenure. In case of the untimely demise or death of the policyholder during the tenure, the term life insurance will pay the sum insured to the family. The best thing about term life insurance is that irrespective of the cause of the death, the insured sum will be given to your family.
Benefits of having term life insurance in the UAE
- Low Premiums
- More beneficial if purchased at a young age
- High Sum Assured
- Pays the insured sum in case of death irrespective of the cause of death
- Add-ons can cover critical illness as well
- Accidental Death Benefit Coverage
- Life insurance till the age of 70
Things to know before purchasing term life insurance in the UAE
Before providing you with term insurance in the UAE, every insurance company in the UAE will run some tests and health check-ups to check your health. These tests usually include blood and urine samples along with ECG to ensure that you are not suffering from any pre-existing terminal health condition. In case you are suffering from a terminal disease, the insurance provider may refuse to offer you a term insurance plan. However, some insurance companies might offer you a term insurance plan but the company will not be liable to pay the sum assured to your family in case the policyholder passes away before the completion of two years of term insurance plans.
If your test results reveal that you are suffering from a health condition the insurance provider may offer you term insurance at a higher premium rate. Additionally, in case you have been in medical surgery in the past, a premium of your term insurance might be higher.
Your term insurance seriously considers your lifestyle before offering you the cost of term insurance in the UAE. If you have a habit of regular consumption of alcohol or you smoke cigarettes regularly, the term insurance company will demand a higher premium for your term insurance plan in the UAE.
Even though your term insurance will cover you around the globe, the sum insured awarded to your family will be in the currency mentioned on the policy schedule.
Death Benefit Claim
To ensure that your family members receive the assured sum on your demise, they are required to file the claim within 90 days of the death. Also, in case of a death claim, the company might conduct an autopsy or independent inquiry to determine the cause of death.
Term insurance is one of the best life insurance plans since it offers an insured sum to the nominee of the policyholder irrespective of the cause of death. However, under several circumstances, the term insurance provider might refuse to provide any claim to your family. These circumstances include:
Passive War Risk and Terrorism
In case you die in a war or a violent riot or any mass violent act, the company will not be liable to pay any insured sum to your family. Also if any mutiny or invasion is resulting in your death, your family will not receive any financial support from the insurance provider. Similarly, if you endorse or participate in an act of terrorism, your term life insurance will not cover any life risk. In case you pass away and the investigation reveals that your death was caused due to your association with a terrorist group or any organized violent group, the term insurance shall not cover you.
If you are overtly or covertly participating in any criminal or unlawful activity and you lose your life, your family will not receive any monetary support from your term insurance.
Generally, term life insurance covers death caused by suicide. However, the company does not provide this benefit till the third year of your policy. If you purchase term insurance and pass away and the investigation reveals that the cause of your death is suicide but you have not completed two years with your term insurance provider yet, the term insurance will not cover suicide.
While informing your term insurance provider about your medical past and family history, be very careful. In case you provide any information which is later discovered to be wrong or untrue, the company will not provide benefits for your term insurance.